All Forum Posts by: Brandon Vukelich

@Callie Mejia there are definitely more affordable options when you look south of Seattle, into Pierce County.  Inventory is extremely lean. Patience is key, stick to your criteria. Do you have a budget in mind?  Pre-approved?

Can't post contact numbers and emails, feel free to send me a private message.  Or...google Long Range Customs contracting or Catalyst Construction Services.

No, only one assignment agreement necessary but that is where you need to be sure THAT agreement stipulates the total/combined wholesale fees and clearly instructs escrow/closing agent how much your check/wire should be of that total at closing.  I'm not an attorney but our says something like "Assignor instructs (closing agent) to disburse (total assignment fee) at closing as follows: X amount to (wholesaler #1) and Y amount to (wholesaler #2)."   This can be an additional clause to the assignment agreement or we have a default paragraph to address this so our birddog gets his share cut at closing.

It's called daisy-chaining a deal.  You should connect with the wholesaler that owns the contract and make sure the assignment agreement to your buyer includes your fee on top of the 1st wholesaler's fee and has language in there instructing escrow/closing agent to disburse your funds directly to you at closing.  So if his wholesale fee is $10k and you charge your buyer $10k more, the assignment agreement to your buyer would state $20k with instructions to cut checks $10k and $10k as appropriate.  That's the best way I can quickly summarize in a forum post.  Hope that helps. 

Thanks again @Albert Bui. Yes, ideally we would re-fi into something better if it makes sense.  We have that hefty PPP.  Maybe we should chat offline. Feel free to call me (number is in my signature) at your convenience any time.  Thank you.

Thanks Albert. I figured my traditional lending partners may be incorrect or just not familiar. Previous owner rehabbed the property in 2018 to turn it into a full time STR business, so unfortunately, 2019 is the only full year with great financials. Obviously, 2020's figures are going to be down 30% or more at this point. Seller owned it in her name. We have purchased and held it in an LLC. This will be our first tax year.

Purchased our first STR property in Feb 2020 using Athas Capital, 6.875% over 30 years. Price (appraised value) was $1.1mil, loan is $815k with a $40k prepayment for 2 years. We selected Athas due to our "traditional" residential lenders said it would be challenging to obtain conventional financing due to lack of 12-month leases in place and the property operates as a STR "business." Based on the situation at the time, quick closing was critical and didn't allow for much opportunity to shop our deal around. Wondering if there are any lenders that could pull together better financing, soon or in a year or so. The property is a stacked duplex in front with a detached studio (DADU) in the rear. There are four entities (owners) of the holding LLC. All have very good credit. Appreciate any insights into alternative financing or input if what we have in place is "ok" for this type of property.

My quick 2 cents....it's not as easy as people make it out to be. You REALLY have to know your market, know rehab costs and ARV (after repair value or estimated retail price). Keep in mind the 70% rule isn't a concrete tool. Your end-buyers (flippers) will have have various expectations on target net profit, some have lower resale costs (because they are licensed agents or sell FSBO) and/or they have can flip a property at various levels of repair/costs.

Everyone has access to the same data online these days. Either look through public records, pay for a service to send you properties, "drive for dollars" or something else. Find buyers by networking via local Meetup or other REI groups in your area.

Don't be cheap on your purchase and sale agreement, assignment contracts, addenda, etc.  Be sure you either have a real estate attorney draft them up or obtain them from a qualified source.  You're dealing with contracts and you better know how to use them and cover your butt.  Best wishes on your journey!

What would make this a GREAT DEAL? - I'm skewed from our West Coast situation but a 6.5% CAP with potential to raise that within 12 months. Positive cashflow of $200+ per door. The ability to lock a decent financing terms. Also, is the area up and coming or a seasoned high demand location? Low crime. Rents trending upward?

What are some key questions that you would be asking me about the property? - Some of the same q's above. Financials/rent roll, what's the unit mix, how much parking available, walkability, leases or M2M, w/d in units, carports/garages/storage available, self-managed or PM?

What would peak your interest and make you reach out for more information? - Answers to the above.

What are your top three deciding factors that makes or breaks a deal (obviously the financials, but what else)? - Potential net cash flow, deferred maintenance, condition of the local economy.

What do you find frustrating about working with a sales agent for this big of a project? - Their lack of knowledge about the details, history, potential of the property and their unprofessional marketing efforts (in the listing or offering memo).  

With COVID has your buying strategy shifted? - Absolutely.  On hold unless a screaming deal pops up that is absolutely too good to pass up.

Agree with most...at first glance it is hard PASS. $1000 positive cf for 20 "doors" wouldn't fly with most investors unless you are ZERO into it.  Even so, no forced appreciation and not a fan (personally) of that many SFRs at only $50/unit.  Best wishes on your investment journey!